So it depends if you can arrange the payment structure with the servicer and want to stay in this deal. 

Two members will be the managing members and also providing capital, and one member will strictly be providing capital.We would like to put a waterfall structure in place for any money distributions, including preferential return on cash yield, and an IRR hurdle for liquidity events, etc. and we would like all this to be clearly spelled out in the operating agreement. 

I'm not paying an additional $500 on a house that we may not even obtain.Foundation and structural beams look good.

Typically, LLC's shine, when holding properties in them, in case someone sues, or to help structure pay, dividing profits and losses, etc.

That means it could have any number of structural or safety hazards.

You can't structure a foreclosure deal without knowing the fundamentals of wholesaling.

When I look to buy, I look at the structural integrity of the property (repair concern); I am interested in three things:  Age and condition of roof, AC units and the condition of Slab/floors.  

Probably at a loss.4 - If after 4 years (or at any time during the option period) you still want to buy it, you just exercise the option...and buy it.The LO gives you the most control, the best profit structure, and the lowest cost. 

My question is do I have to start a new LLC with each partner or is there an easier way to structure this?

Hoping to see if someone can tell me if master lease options are still common, do most investors look for owner financing or what other ways can you/have you structured deals with little or no money down.